It’s not about how much you earn, but how much you save and what you do with that money (invest!).
You may think that paying a couple of dollars more is no big deal, but over time, the amount adds up quite significantly. This in turn affects your ability to FIRE (short for “financial independence, retire early”), if that’s your ultimate goal.
If you want to see your net worth and savings increase, then you need to make sure that the money coming in surpasses your expenses. However, we understand that it might not be easy for everyone, since different people have different situations and have to deal with financial commitments.
Why people fail to save
We’re sure that you’ve heard your friends complaining about how broke they are because they aren’t paid enough.
However, the real reason why they’re broke isn’t because they aren’t earning a salary — it’s how they spend their money.
If you’re desperate enough to dig yourself out of that broke pit, you’ll properly budget yourself and follow a disciplined lifestyle. That is totally possible if you stop eating out every other night and buying unnecessary things.
Want to save? Get advice from frugal people
One of the best ways to improve your life (and bank balance) is by emulating the people who are doing it right.
It doesn’t mean you have to completely copy their lifestyle, but to find out what they’re doing that allows them to save up and see how you can apply some of these habits into your own life.
One way that frugal people save up is by living below their means. For example: Between a $10 salad and $5 meal at a hawker centre on a regular day at work, they’d usually choose the latter (even though they can very well afford the salad) because it is cheaper. (BTW, eating hawker food doesn’t mean you’ve to compromise on the nutrients. Here are some tips for ordering diet-friendly hawker food.)
You may argue that saving $5 isn’t significant, but remember that every drop makes up an ocean.
That’s a $100 difference within a month and a $1,000 difference in a year, assuming you go to work 20 days a month. Shocked by the amount?
Keep scrolling to read about the 5 habits of super frugal people – we can surely look at adopting those habits to save more money.
Disclaimer: This article is not about being a cheapskate, because we believe that you still need to spend a little, live life and have fun sometimes!